An exciting opportunity to make a potential 100% gross rental yield, Liberal Avenue, Detroit, MI Michigan, USA. $5000 for 638sq ft tenanted property.
OwnBrix is pleased to announce that it has recently acquired a substantial portfolio of properties direct from Wayne County (MI). All the properties were repossessed by the county for non-payment of back taxes (these have now been cleared). Please note that the occupiers may not have been the owners but tenants of a landlord who failed to pay his taxes.
Within the portfolio there are 70 properties that are currently occupied. In the last thirty days OwnBrix has had an external inspection and photographs taken of each property. No internal inspection or contact with the occupiers has yet taken place. We therefore do not know what the occupiers intentions are at this time. These properties will be launched on this basis, giving OwnBrix members the opportunity to profit from future negotiations with the occupiers.
This property is offered to members with the current occupier but without knowledge of what the occupier plans to do. The decision made by the occupier will significantly change the value of these properties. At launch we will not know the position that the current occupier wishes to take.
Within the launch price of this property there is a $500 amount allocated for an OwnBrix agent to visit the occupiers of each of the premises and discuss the options available to them. These options will be:
1) Purchase the property
2) Rent the property
3) Vacate the property
Within 21 days of the full property launch a representative will have called at each property and discussed the occupier’s options. Properties will launch at the offer price and members who have purchased shares will be locked in at this low price. As soon as the reports come in, the price of the property and its brix will change in line with the agents report.
Estimated value: $27,100 (this is a zillow valuation and we feel it is on the high side)
Estimated rent: $653 per month
Building Size: 638 Square foot
Lot Size: 3,136 Square foot
Depending on what the tenant decides, here are the three possible outcomes:
1) The tenant decides to rent the property at $600 per month. In this case the property will be yielding nearly 120% per annum. The capital value of the property with a tenant would be in the 20,000-25,000 USD bracket. This would bring a profit of 13,500-18,500 USD (a capital profit of 100-200%). This profit could be realised within a 12 week period making an impressive 400-800% annualised return on your investment.
2) Occupier wishes to purchase. To persuade an occupier to purchase quickly the property will have to be offered at a heavily discounted price. In this example we would expect a purchaser to pay $10,000-$15,000. A profit of $3,500-$8,500. 50%-110% capital profit. A transaction like this should take approximately 12 weeks therefore the annualised capital profit would be 100%-220%.
3) If the tenant chooses to vacate the property then many options are available. The property could be sold, depending on timelines you could expect to receive $10,000-$15,000. A profit of $3,500-$8,500. 50%-110% capital profit. You could also find a new tenant and rent out the property. In order to secure a tenant quickly the rent may need to be discounted to around $500per month ($6,000 p.a.). This would give a gross rental yield of approximately 100%. This process could take 3-9 months and would show an annualised profit of 75%-150%
Occupied Property
Potential 100% yield
Lot size: 3,136 sq ft
Building size: 638 sq ft
http://www.ownbrix.com/stockmarket/property.php?ELEMENT_ID=7329&property=Residential-Property-Detroit-USA-Occupied---Potential-100-yield
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